- Ontario offers a rebate of part of the 8% provincial part of the HST, even where the federal rebate is unavailable because the unit's value is $450,000 or more.
- Together, the Ontario rebates can reach up to 100% of the 8% provincial part, generally to a maximum of $80,000 for a lease of building and land.
- The rebate is claimed on Form GST524, generally within two years after the end of the month in which tax first becomes payable.
If you buy a newly built or substantially renovated unit to rent out, you pay HST on the purchase. Two layers of rebate may bring some of that back: a federal one and an Ontario one.
The Ontario side has been changing, and the details depend on when construction started. This article explains the structure and the limits that are set out in the CRA's guidance, and flags where you should confirm the current rules.
Two layers: federal and Ontario
HST in Ontario has a federal part and an 8% provincial part. The New Residential Rental Property (NRRP) rebate for a landlord who bought a newly built or substantially renovated rental property can return part of the GST or the federal part of the HST. Ontario has its own rebate of part of the 8% provincial part.
The federal rebate and the $450,000 line
The federal rebate phases out as the unit's fair market value (FMV) rises, and none is available for a unit with an FMV of $450,000 or more.
That line matters for the Ontario rebate, because the two do not stand or fall together. The Ontario NRRP rebate is available, subject to a maximum amount, whatever the unit's FMV, and it can be claimed even where the federal rebate is unavailable only because the FMV is $450,000 or more.
The Ontario rebates and their limits
On top of the Ontario NRRP rebate sits the Ontario enhanced rebate (Ontario ENRRP). Together, the two can give a combined rebate of up to 100% of the 8% provincial part of the HST. For a lease of building and land, the combined maximum is generally $80,000.
Higher-priced units are treated differently. The Ontario ENRRP rebate is gradually reduced for units with an FMV over $1.5 million and under $1.85 million, and no Ontario ENRRP rebate is available at $1.85 million or more.
| Unit FMV | Ontario ENRRP rebate |
|---|---|
| Up to $1.5 million | Available, subject to the other conditions |
| Over $1.5 million and under $1.85 million | Gradually reduced |
| $1.85 million or more | Not available |
The Ontario ENRRP also depends on when construction started, and the government has proposed further temporary relief for new rental housing. Because those rules have been moving, confirm the current position with an accountant or lawyer before you rely on a figure.
Conditions and how to claim
- First use: the unit's first use must be as a primary place of residence, whether the tenant's, the owner's or a relation's, for at least one year, or an equivalent period for certain other arrangements.
- Form: NRRP rebates are claimed on Form GST524, with Form GST525 for co-op and multiple units.
- Deadline: a purchaser-landlord must apply within two years after the end of the month in which tax first becomes payable on the purchase.
Missing the two-year window can mean losing the rebate, so note the date on your closing documents early.
A separate federal rebate for purpose-built rentals
There is also a Purpose-built rental housing (PBRH) rebate of 100% of the GST or the federal part of the HST for eligible new purpose-built rentals. Construction must begin after September 13, 2023 and before 2031, and be substantially completed before 2036.
A multiple-unit complex needs at least ten residential units, or at least four units with a private kitchen, bath and living area, and 90% of the residential units must be held for exempt leasing.
What to do next
- Find the fair market value of the unit and the construction start date.
- Confirm whether the building is a single unit, a multiple-unit complex or a purpose-built rental.
- Plan for the one-year residential first-use condition before you buy.
- Calendar the two-year filing deadline for Form GST524.
- Have a lawyer or accountant check which Ontario rebate rules apply to your build date.
Frequently asked questions
Can I get the Ontario rebate if the federal rebate is not available?
Possibly. The Ontario NRRP rebate is available whatever the unit's FMV, and it can be claimed even where the federal rebate is unavailable only because the FMV is $450,000 or more.
What is the most the Ontario rebates can return?
Together, the Ontario NRRP and enhanced rebates can give up to 100% of the 8% provincial part of the HST. For a lease of building and land, the combined maximum is generally $80,000.
Do expensive units qualify?
The Ontario ENRRP rebate is gradually reduced for units with an FMV over $1.5 million and under $1.85 million, and it is not available at $1.85 million or more.
How and when do I apply?
NRRP rebates are claimed on Form GST524, with Form GST525 for co-op and multiple units. A purchaser-landlord must apply within two years after the end of the month in which tax first becomes payable.
Sources
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
Start a file online — flat, published fees, reviewed by a licensed lawyer before a dollar is owed.